Understanding how Mortgage Trigger Leads can impact your Loan Approval

Understanding how Mortgage Trigger Leads can impact your Loan Approval in Florida, Texas, Tennessee, or Alabama

Although many of us have probably never heard of the term “mortgage trigger leads”, it is important that both homebuyers and realtors know the facts on how it can impact a loan application and closing date.

In today’s short video, I will review the issues caused by mortgage trigger leads and discuss solutions along with the proactive steps that can be taken!

However, before we get started, don’t forget to take advantage of our Second Opinion Service – SOS.

This  is a great way to get access to an expert second opinion which can be especially helpful for those recent loan denials or if you are just in need of guidance on how to make the most out of your home loan qualification.

Understanding Mortgage Trigger Leads

When you apply for a mortgage, a credit report is generated using information from national credit bureaus. These bureaus may then convert your mortgage inquiry into a commercial product called “mortgage trigger leads,” which is sold to competing lenders. As a result, lenders you’ve never contacted or even heard of can solicit you simply because you inquired about a mortgage. had inquired for a mortgage.

This often leads to a flood of unsolicited phone calls, emails, text messages, and physical mail from these competing companies. Such outreach can cause confusion at the start of the mortgage process, especially when some of these companies use deceptive tactics, such as falsely claiming affiliation with your original lender. This may result in consumers unknowingly sharing personal information with unintended sources.

Because the primary goal of mortgage trigger leads is to persuade consumers to switch lenders, many people are misled into sharing sensitive financial information or allowing unauthorized credit checks.

Mortgage trigger leads are often created and sold almost immediately after your credit inquiry. Within minutes, you may start receiving phone calls, texts, and emails, and within days, offers may arrive by mail. Some of these offers can be highly deceptive, using enticing terms that may not hold up upon closer scrutiny.

How can a Mortgage Trigger Lead be stopped?

Because of the deceptive nature of these mortgage trigger leads, there has been a push by industry advocates for an outright ban on trigger leads due in part to the inevitable risk of identity theft and the disruption it causes to consumers during an ongoing mortgage transaction.

Although we have seen little traction in this area, H.R. 7297 is currently pending in the house of representatives and was recently introduced “To amend the Fair Credit Reporting Act to prevent consumer reporting agencies from furnishing consumer reports under certain circumstances, and for other purposes.”

Additionally, the U.S. Senate approved the Homebuyers Privacy Protection Act S. 3502.

While the impact of this pending legislation remains to be seen, it represents important first steps toward much-needed reform and regulation in this space.

How to Protect Yourself from Mortgage Trigger Lead Harassment

Until meaningful legislation is enacted, here are some steps you can take to safeguard yourself from mortgage trigger lead harassment:

• Register with the National Do Not Call Registry. You can sign up through the Federal Trade Commission (FTC) website to reduce the number of telemarketing calls to your home.

• Use the OptOutPrescreen service available through the FTC website to stop receiving prescreened credit and insurance offers. Keep in mind that it can take some time for these offers to cease, and if you share a joint account, both account holders must opt out.

Metroplex Mortgage Services has been in business since 2001 and is here to help make the mortgage process successful!

Just call, text, or email to discuss your scenario and let us show you the “Metroplex” difference.

800-806-9836 Ext. 280
Call/Text: 863-593-2001
SeanS@MPLX.org

As always, I want everyone to make it a great day, and look forward to seeing you right here for the next tip of the week!